'This is a blip': Greycroft chairman on market sell-off

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Alan Patricof, chairman of venture capital firm GreyCroft, joins ‘Closing Bell’ to discuss markets.

Stocks fell on Friday, extending the deep rout in the previous session, as Wall Street edges closer to the end of a tumultuous trading week.

The Dow Jones Industrial Average fell 532 points, or 2.1%, cutting almost half of its morning losses. The 30-stock benchmark plunged 894 points at one point in the session. The S&P 500 and the Nasdaq Composite dropped 2.7% and 2.9%, respectively.

Friday’s declines came as the benchmark 10-year Treasury yield tumbled below 0.7% for the first time ever. Investors continued to seek safer assets amid fears that the coronavirus will disrupt global supply chains and tip the economy into a recession. Another haven asset gold is on track for its best week since 2008.

Airline stocks rebounded on Friday, providing the broad market some support, after chief economic advisor Larry Kudlow said the White House is considering “targeted measures” to offset the negative impact on the industry from the coronavirus outbreak. United Airlines jumped 4%, while Delta Air Lines rose more than 2%.

Still, the market remained under pressure even after a blowout jobs report. The U.S. economy added 273,000 jobs in February, beating expectations of 175,000 new payrolls last month. The unemployment rate also fell back to 3.5%, matching its lowest level in more than 50 years.

“Markets have not done well on Fridays because we are all expecting the situation to worsen over the weekend,” said Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management.

It has been a roller-coaster trading week on Wall Street, as the 30-stock Dow has swung 1,000 points or higher twice within three days. Friday’s declines extended a deep rout for stocks, adding to a 969-point loss for the Dow in the previous session.

“The magnitude of the sell-off in the S&P 500 so far has further to go,” Binky Chadha, Deutsche Bank’s chief equity strategist, said in a note. “In terms of duration, just two weeks in, it is much too early to declare this episode as being done.”

The expanding health crisis kept investors on edge as global cases of the coronavirus infections surpassed 100,000 with at least 3,383 deaths around the world. In the U.S., at least 12 people have died of the disease. California has declared a state of emergency, while the number of infections in New York reached 33.

President Donald Trump on Friday signed a sweeping spending bill of a $8.3 billion package to aid prevention efforts and research to quickly produce a vaccine for the deadly disease.

Treasury yields saw sharp declines this week after the Federal Reserve announced an unexpected 50 basis points cut from its benchmark interest rate. It was the central bank’s first such emergency move since the financial crisis more than a decade ago.

The Dow posted its second-biggest point gain on Wednesday as major wins from former Vice President Joe Biden during Super Tuesday sparked a relief rally, especially in the health-care sector. However, these sharp gains were erased quickly as coronavirus fears continued to grip Wall Street.

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Comments

Udo Blo says:

So if your superannuation just dropped by thousands of dollars and you have no job that keeps putting money into your super retirement fund, then that person should take comfort in the thought that it was just a blip. Chances are that it will never recover and retirement has been shelved indefinitely. What a load of bs, this bloke must be loaded and not struggling.

Lightning Driver says:

He would call a nuke dropped on NYC a blip. Old fool.

Jarrod Medrano says:

it doesn’t feel like a blip if you lose your job and life savings.

Melissa H says:

Spoken like a man who wants his bonus.

Sergi Medina says:

This man has lived many corrections and some recessions. Give him some credit, especially if you're younger! Also, this virus is being REALLY exaggerated by the media… Not much different from a common flu… Not very lethal. People just seems to love panicking.

Canthira Boonseng says:

He said what I want to hear. 😂

Bobby Walker says:

What a fool

Andrew Gorsic says:

old on drugs

G T says:

Just look at the 10yr chart of the S&P. This is a blip in the radar.

John Grear says:

Props to the cute one to keep pushing him on his "blip" BS.

ACK Preacher says:

We were told there was nothing to worry about in 2008 — Sub prime was well contained — We were told not to worry about inflated PE ratios in 2001 (it was the new normal) — Yep heard it all before — Fool me once shame on you….fool me twice shame on me —

mark stanfield says:

Whistling as you walk by the graveyard…..

Richard L says:

Sorry I'm selling we everything. What you think I am, a fool?

AJP says:

A blip in the context of the last 10 years….BAHAHAHA. What a toad

Christopher Spavins says:

Wait a second, where is George Soros? He probably made this virus in his office.

ACK Preacher says:

Stay calm — nothing to worry about — Where have I heard those words before — OHHHHHH thats right — Just before the Titanic sank — captain and crew telling the masses nothing to worry about the ship is unsinkable, help is on the way…..meanwhile the rich and powerful were quietly escorted to the lifeboats which were deployed half full while the rest of the "peasants" were left to perish in the frigid waters — Keep in mind this clown Alan Patricof is paid on assets under management and retaining clients — so of course he doesnt want his clients selling out of his fund — DUH ?

Rob Bby says:

Jeffrey Gundlach – Fed to cut by another 50

https://youtu.be/4C-2SNPSaUw?t=1605

doug robertson says:

Impale yourself old man…

Wado Waleli says:

What's just a "blip" is the move down in the market we're seeing right now compared to the decline we will see unfold in the next several months.

Witek Michno says:

And buy some food not just toilet paper.

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